The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers

Which of the following statements regarding 1035 exchanges is NOT correct?

A) A universal life insurance policy may be exchanged for a fixed deferred annuity tax-free, and the deferred annuity thereafter becomes subject to regular annuity taxation rules. B) A life insurance policy that is a modified endowment contract (MEC) may be exchanged for a new life insurance policy and, provided that premiums are paid for at least 7 years thereafter, no longer be considered a ME C) In order for an exchange of policies to qualify for Section 1035 treatment, the exchange of policy values must be made directly between insurers. D) A deferred annuity may be exchanged for an immediate annuity with no immediate tax consequences, but annuity benefit payments are subject to taxation under annuity taxation exclusion ratio rules.

A firm is currently purchasing an item for inventory using the basic EOQ model. They plan on making the product themselves and will be using the EOQ model based on noninstantaneous receipt of inventory

If everything else stays the same, what changes should the firm expect? A) EOQ decreases. B) Average inventory level decreases. C) Reorder point increases. D) Safety stock increases.